Customers demand experiences where they are treated as unique individuals. And, they want to engage with brands, products, and entities that understand and empathize with their realities and daily challenges.
It’s a reality that the numbers confirm:
- 71% of customers express frustration when their experience with a product or service, from first contact to acquisition, isn’t personalized.
- 80% of customers consider the experience a company provides as important as the product or service itself.
- 64% of the time, a customer switches brands due to the former’s lack of relevance to their behavior.
- 67% of consumers would pay more for a superior brand experience.
- Entities with even a minimally personalized strategy can achieve a 33% increase in customer loyalty.
How to meet this customer need?
Simple! By providing unique experiences to our customers: hyper-personalized experiences. Increasing consumer expectations, parity among products, and prices have prompted the personalization of the user experience (CX) to reach new heights.
Hyper-personalization relies on data, advanced analytics, and artificial intelligence, offering insights and new scenarios where interactions can be tailored to customers’ realities to better meet their expectations. Today, an optimal CX relies on hyper-personalizing all brand interactions, from e-commerce platforms to after-sales service.
In the physical world, hyper-personalization is the unique and personalized attention each customer receives. In digital channels, according to McKinsey, “brands must meet a new standard: the care of one, where all decisions the brand makes aim to cater to each customer and their unique needs independently.”
Advances in technology now allow brands to transform their operating models while reducing CX costs.
To maintain competitiveness in the current consumption scenario, brands must adopt hyper-personalization in their marketing strategies by exploiting data and using advanced analytics and artificial intelligence, all applied in their customers’ journeys to improve their CX and consequently their engagement.
What does a hyper-personalization strategy achieve?
- Increases conversion: By offering customers products, services, or content that are of genuine interest to them, a brand significantly enhances its conversion rates.
- Improves customer loyalty: A well-implemented hyper-personalized strategy makes the customer feel valued and understood, which in turn fosters their commitment to the brand.
- Reduces customer churn: When a customer feels their needs are being met and expectations surpassed, they’re less likely to switch to a competing brand.
- Enhances the brand’s reputation: Customers who enjoy a personalized experience are more likely to recommend the brand to others, which helps to boost its reputation and expand its reach.
Implementing hyper-personalization as a core component of a brand’s strategy can seem overwhelming, but the investment in time, resources, and technology can reap significant benefits in the long run. As consumers continue to demand personalized experiences, brands must rise to the challenge and provide the level of service that keeps their customers coming back.
Remember, successful hyper-personalization isn’t just about using data and technology, it’s also about understanding and respecting each customer’s unique journey and meeting them where they are. By doing this, brands can create truly meaningful connections that result in long-term, loyal customer relationships.
What does a hyper-personalization project look like?
A hyper-personalization project is a continuous process, with information and insights gathered fueling each phase of the methodology.
The methodology of such a project passes through 3 stages:
- Emotional: We understand how our customers relate to us, contextualize, and understand all the technical aspects and assets that participate in the user experience.
- Intelligent: This stage determines how we will identify our customers in different digital assets thanks to deep data analysis. By applying machine learning processes to this step, we can integrate all the insights obtained from our customers and exploit them in real time during future interactions with them.
- Activation: Various hyper-personalized experiments are deployed with the help of artificial intelligence, which allows us to sift through user data in real time and thus provide an immediate response to each of them and their needs, eliminating possible barriers in their journey.
Any hyper-personalization project should allow us to measure our actions so that they serve as a learning opportunity within the project itself.
It’s not enough to just collect data about our current or potential customers and segment them based on that data, as was the case in the past. We need to activate the data.
Data activation involves exploiting our customer data through insights and, at the same time, converting these insights into actionable measures: getting a complete view of the user to improve their experience across all channels and interactions with the brand or product.
What does data activation consist of?
- Collection: Gather data from any point and transfer it to a centralized platform where it can be aggregated in real-time.
- Exploitation: Analyze the data to understand its true value and apply it to marketing actions.
- Hyper-personalization: This is the most complex stage and involves integrating all the data into a common environment where actions can be developed to efficiently link users with a brand or product and thus achieve better performance.
At Making Science, we offer end-to-end content deployments for brands and entities, allowing them to provide unique browsing experiences, just like their consumers. Get in touch with our team today to learn how you can use data to hyper-personalize your customer journeys.